Asian Markets Rebound:Shares of key Oil Marketing Companies (OMCs) like BPCL, HPCL, and IOCL surged after the government’s LPG price hike and special excise duties on petrol and diesel. This surge comes as part of a broader global stock market rebound, with Sensex and Nifty 50 bouncing back from their sharpest drops in months, signaling a potential economic recovery.
Just one day ago, global markets were under intense pressure, with Sensex and Nifty experiencing their largest drop in 10 months. The market was rocked by fears surrounding Trump’s trade tariffs and escalating trade war tensions, leaving investors nervous about a global economic slowdown. However, this wasn’t just an issue affecting India’s stock market—the Asian markets, including Japan’s Nikkei and China’s stock market, also took a significant hit.
Fast forward to today, and things have dramatically changed. The Nikkei has surged by 5.50%, China’s stock market is showing signs of recovery, and the Sensex has rallied by an impressive 700 points. The Nifty is now climbing above 22,350. The big question now is: Can this global market rally sustain momentum, or are we about to face another wave of volatility and recession fears in 2025?
As stock prices surge, one question remains: Is this the beginning of a long-term global recovery, or are we simply witnessing a brief market correction before a bear market takes over?
Asian Markets Rebound: Sensex and Nifty 50 Recover from Worst Drop in 10 Months, Nikkei Surges 5.5%
Asian stock markets experienced a powerful rebound on Tuesday, led by Japan’s Nikkei 225, which surged by 5.5% after suffering a near 8% drop the previous day. This recovery followed a turbulent session on Wall Street, where President Trump’s tariff threats triggered fears of escalating trade tensions, sending shockwaves through the global markets.
In just 30 minutes of trading, the Nikkei 225 climbed to 32,819.08, restoring investor confidence in the Japanese market. South Korea’s Kospi also showed positive movement, rising by 2%, while markets in Australia and New Zealand traded higher, further fueling the optimism in the region.
The previous day, Hong Kong’s stock market saw a 13.2% plunge, marking its worst single-day loss since the 1997 Asian Financial Crisis. The steep decline reflected growing concerns about the global impact of U.S.-China trade disputes and their potential to stoke a wider economic slowdown.
Meanwhile, Indian markets rebounded strongly on Tuesday, with the Sensex and Nifty 50 recovering from their worst single-day drop in 10 months, which was triggered by a sell-off driven by Trump’s tariff escalation. On Tuesday morning, the BSE Sensex surged by 714 points, or 0.96%, climbing to 73,852, while the Nifty 50 rose by 240 points, or 1.10%, reaching 22,398 around 10:25 am.
This recovery was notable, considering the sharp losses seen on Monday, when the Nifty and Sensex fell by 3.2% and 3%, respectively, in contrast to a 8.4% decline in the MSCI Asia ex-Japan index. The global selloff was triggered by concerns over Trump’s tariff threats and their potential long-term impact on the Asian economy and global trade.
Shares of Oil Marketing Companies Soar as Government Increases LPG Prices: BPCL, HPCL, IOCL Benefit from Price Hike
Shares of key Oil Marketing Companies (OMCs), including Hindustan Petroleum Corp. (HPCL), Bharat Petroleum Corp. (BPCL), and Indian Oil Corp. (IOCL), saw a notable surge following the government’s decision to raise LPG prices and introduce a special excise duty on petrol and diesel. This policy shift is expected to significantly boost the financial performance of these companies, providing relief from ongoing losses.
The price hike of Rs 50 per cylinder in domestic LPG is projected to generate approximately Rs 9,000 crore in revenue for OMCs in FY26. This increase will help offset the challenges faced by these companies due to rising input costs and fluctuating global oil prices.
As of 11:15 am, BPCL shares surged by 2.8%, trading at Rs 281.25 on the NSE, while HPCL stock climbed by 4%, reaching Rs 363. Shares of state-run IOCL also saw a rise of 1.7%, reaching Rs 130.3.
This surge in stock prices underscores the market’s positive response to government actions aimed at stabilizing the financial outlook of India’s key oil sector players.
